The Major Argument in Favor of an Optional Federal Charter

question 30

Multiple Choice

The major argument in favor of an optional federal charter for insurers is that

• A)small insurers need a national charter to be competitive with large insurers.
• B)a federal charter will prevent insurer insolvencies.
• C)a federal charter will provide greater oversight of insurer market practices.
• D)national insurers are at a competitive disadvantage under the present system.

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Definitions:

Indifference Curves

Graphical representations in economics showing combinations of goods that give the consumer equal satisfaction and utility.

Bundle

In economics, a combination of goods or services that is sold together as a single package, often for a price lower than the sum of the individual components.

Scones

Scones are a type of baked goods, originating from the United Kingdom, often lightly sweetened and served with tea.

Budget Constraint

An economic model representing all the combinations of goods and services that a consumer can afford with a fixed budget.